09 September 2022 # Innovating operations: boost efficiency, reduce costs ![](https://www.digitalk.com/images/red-black-pattern.jpg) *For MVNO’s, the clue is in the “v”; virtual. Successful MVNOs aren’t resource-heavy but, rather, they’re agile organisations with lean and effective operational infrastructures. That means they don’t solve problems by throwing money and people at them so well integrated systems and shared data are critical to commercial success. That being the case, where is there room to improve performanc*e? ## How to be a successful MVNO To understand how Mobile Virtual Network Operators can fine-tune their operations to perform more efficiently, while simultaneously reducing costs, it makes sense to go back to basics. On what must MVNOs focus to achieve commercial success? Only if we can grasp the key areas can we investigate where operations might be improved. Generally, five focus areas can be highlighted. ## Expertise in market segmentation and leveraging the brand The MVNO model works best when there’s a strong underlying asset, for instance a brand name, a customer database, or relevant channel network and reach. That means access to a niche audience that lies beyond the reach of traditional business models combined with unique brand positioning are two key ingredients of success. ## Strong relationships with operators MVNOs need more than just network access. They need strong contracts that are adaptable enough to accommodate change (for instance, to support new service offerings), that allow for renegotiation if it becomes necessary to switch network hosts, and they need to understand now network operations (for instance traffic patterns) might impact their business plans. They also need to ensure their host MNO’s market plans don’t collide with their own. ## Excellence in marketing Clear and attractive value propositions that directly meet the needs of the target market are critical, as are pricing strategies. Great customer service, easy payments, and leveraging social networks are all examples of the fundamental requirements here. ## Focus on Sales and Customer Experience The successful MVNO is a master of all trades. But critically, it will understand and master its channel infrastructure, be able to identify win/win partnerships (for instance, with financial institutions), and understand (and be able to deliver) high quality customer satisfaction. It will also have a deep knowledge of its own underlying processes, tools, and IT stacks which can be used to optimise performance from acquisition to retention. ## Achieve operational excellence MVNOs must get the key operational questions answered correctly, such as billing and administration. Remember that the largest chunk of an MVNO’s cost structure involves variable charges like wholesale airtime costs and customer acquisition expenses. So, they need to keep exceptionally close control over their variable costs. ## An efficient operating environment To achieve the required levels of performance in any and all of those areas of performance, an efficient operating environment is a central requirement. That means having an integrated business support platform that eliminates information and processing gaps between the different elements that we’ve noted. If such a platform isn’t in place, the MVNO will be unlikely to thrive. If it is already in place, is it delivering what it should be? If the MVNO can’t provide positive answers to the following questions, then the topic of acquiring or, if one is already in place, optimising such a platform likely needs to be considered urgently. 1. When you create a new service or product offer, can you launch it immediately? 2. When you launch a new service or product offer, is it instantly integrated with charging, policy, customer service, and self-care? 3. Is updating your existing offers and products easy? Can you roll out changes or make adjustments seamlessly and instantly? Are all related systems updated in the same way? 4. Does your platform have a common data model and are all processes synchronised? 5. Is everything automated regardless of the point of access (whether by a customer, an agent, or the MVNO itself)? 6. Are you communicating with your customers proactively, for instance with service updates that affect them? 7. Are you targeting the right people with these offers? 8. Do you offer “rich” and fully functional self-care? 9. Can you access analytics that enable actions to be taken based on insight accrued that impact loyalty and, in turn, value? ## The cart and the horse go hand in hand Despite the critical importance of answering these questions and ensuring the right platform is in place, it’s not always the first priority. And that’s a mistake. For many MVNOs, the primary focus of their business plan lies in licensing, targeting customer segments, and negotiating the right wholesale agreements. Only then is the question of technical infrastructure fully considered. But leaving the technology question to last is a serious error. Operational efficiency is critical to MVNO success, and the choice of technology platform will define the extent to which success can be achieved. Make the wrong platform decision and the MVNO will spend its time battling to manage its systems rather than growing its business. ## The Digitalk Solution The right platform will deliver both the operational agility and performance efficiency that, as we’ve seen, are critical to the MVNO’s commercial success. One example of such a solution is the Digitalk Mobile Cloud, a complete managed service offer that provides tactical and strategic flexibility, enables rapid service configuration, and enables updates and changes so that competitive advantage can be achieved now and protected in future. Clearly, in this blog we’ve only hinted at some of the many compelling reasons why MVNOs must get their platform strategy right as a matter of priority. If you’re facing some or all of the questions we’ve raised and you’d like to discuss the answers at greater length, we’d be happy to talk further about your own requirements. To set up a call, please click here. Meanwhile, if you’d like to read more about how to optimise your business support platform to overcome the challenges we’ve described as well as learning more about the challenges themselves, please download Part 4 of our MVNO innovations series, [here](https://www.digitalk.com/mvno-innovation/?utm_source=web-blog&utm_medium=organic&utm_campaign=cy22q3-mvno-innovation-p4). --- **Share this post** [ ![Copy link](https://www.digitalk.com/images/copy-link.svg) ](https://www.digitalk.com/javascript:copyToClipboard();) [ ![Twitter](https://www.digitalk.com/images/twitter-grey-boxed.svg) ](https://www.digitalk.com/javascript:window.open("https://twitter.com/intent/tweet?url="%20+%20document.location.href)) [ ![Facebook](https://www.digitalk.com/images/facebook-grey-boxed.svg) ](https://www.digitalk.com/javascript:window.open("https://www.facebook.com/sharer/sharer.php?u="%20+%20window.location.href)) [ ![Linkedin](https://www.digitalk.com/images/linkedin-grey-boxed.svg) ](https://www.digitalk.com/javascript:window.open("https://www.linkedin.com/sharing/share-offsite/?url="%20+%20document.location.href))